Emerise, emerging markets investors: Natixis Asset Management’s new Singapore-based division dedicated to emerging markets

Going back to the fundamentals of emerging markets: growth and diversification

The potential of emerging markets is still very underestimated by investors: emerging economies represent more than 50% of the global market GDP¹, while their market capitalisation only accounts for 10%². Furthermore, positive long-term prospects make these markets particularly attractive, both in terms of growth potential and portfolio diversification.

“To meet investors’ long-term expectations, we are convinced we have to bring back the original essence of emerging markets: growth and diversification,” explains Stéphane Mauppin-Higashino, Head of Emerise.

Identifying emerging small & mid cap companies with high growth potential

Based both in Singapore and Paris, Emerise relies on local teams and research. Its offering covers all emerging regions - Europe, Asia and Latin America - as well as all market capitalisations, from large caps to small & mid caps, referring to an innovative and original index: the MSCI Emerging Markets Investable Market Index – IMI³. Convinced that small & mid cap stocks with strong growth prospects can provide superior returns to other corporate categories, Emerise strives to integrate these high value-added stocks in all of its portfolios. Emerise believes that small & mid cap companies represent the true emerging corporate world.

Offering the upside potential of growth stocks over the long term

As a stock picker, Emerise selects growth stocks combining three key fundamentals: stable earnings growth, solid economic fundamentals and clear competitive edge with high value-added. On-the-ground research and in-depth knowledge of companies’ management teams form the core of its investment philosophy. Emerise’s fund managers make almost 1,500 company visits every year, analyse around 300 companies in depth, and constantly monitor close to one hundred of these companies. With an approach combining bottom-up research and a rigorous selection of growth companies, the funds managed by Emerise’s team, comprise 50 to 70 stocks⁴. The portfolios are concentrated to provide investors with the best of the emerging world over the long term.

The Emerise fund range has four areas of equity expertise: Global emerging, Asia, Emerging Europe, and Latin America.

Emerise’s fund range is distributed by Natixis Global Asset Management's global distribution platform and is designed for all types of investors, both professional and non-professional. Professional investors: institutional investors, companies, multimanagers, private banks, IFA⁵ and banking networks. The Emerise fund range is also marketed by the Banque Populaire and Caisse d'Epargne networks.

1 Purchasing power parity – Source FMI – May 2015

2 Source MSCI – May 2015

3 IMI: the MSCI Emerging Markets Investable Market Index captures large, mid and small cap representation across 23 emerging countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. With 2,623 constituents, the index covers approximately 99% of the free float-adjusted market capitalisation in each country.

4 As at May 2015

5 IFA: Independent Financial Advisor

The analyses and opinions referenced herein represent the subjective views of the authors as referenced, are as of the date shown and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.